Research on Motivation of Corporate Social Responsibility Based on Game Theory

2011 Chinese Business Review  
The negative externalities of businesses brought serious social and environmental problems. Based on externality theory and game theory, the author in-depth analyzes intrinsic motivation of corporate social responsibility, and points out that corporate social responsibility will increase production costs, so companies will not take the initiative to raise the level of social responsibility. Through the analysis of corporate social responsibility profits, the paper reveals that if the government
more » ... lack reasonable system to regulate corporate behavior, then the firm, pursuiting maximizing profit, will choose the Nash equilibrium of consumpting public resources, and not take the initiative to fulfill their social responsibility to seek the Pareto equilibrium of the whole regional optimal, which results in high output and low returns. The research finds that the government should strengthen the publicity of corporate social responsibility, privatization of corporate social responsibility benefits and establishment of corporate social responsibility system and other means to guide and standardize the corporate social responsibility.
doi:10.17265/1537-1506/2011.08.005 fatcat:if6m5f4py5gr5eirsq7jzuhajq